NEW YORK (May 26, 2021) – The American Institute of CPA’s (AICPA) Financial Reporting Executive Committee (FinREC) has issued four working drafts of accounting papers for Insurance Entities and is requesting feedback. The drafts are related to the implementation of FASB Accounting Standards Update (ASU) No. 2018-12, Targeted Improvements to the Accounting for Long-Duration Contracts.
The FASB accounting standard on Long-Duration Contracts makes targeted improvements to the existing recognition, measurement, presentation and disclosure requirements for long-duration contracts issued by an insurance company. FinREC and the AICPA Insurance Expert Panel will continue to develop working drafts on accounting implementation issues that have been identified for the new standard.
The working drafts for implementation of FASB ASU 2018-12 are available at:
Final issues for the project will be included in the Audit and Accounting Guide: Life and Health Insurance Entities.
The AICPA is seeking feedback from preparers of financial statements, practitioners, and other interested parties. Please submit informal feedback to Kim.Kushmerick@aicpa-cima.com by July 29, 2021.
About the Financial Reporting Executive Committee
The Financial Reporting Executive Committee (FinREC) is the senior committee of the Institute for financial reporting. It is authorized to make public statements on behalf of the Institute on financial reporting matters without the clearance of either the Council or the board of directors of the Institute and to clear statements of other committees that include references to financial reporting positions. The mission of FinREC is to determine the Institute's technical policies regarding financial reporting standards and to be the Institute's spokes body on those matters, with the ultimate purpose of serving the public interest by improving financial reporting.
About the American Institute of CPAs
The American Institute of CPAs (AICPA) is the world’s largest member association representing the CPA profession, with more than 428,000 members in the United States and worldwide, and a history of serving the public interest since 1887. AICPA members represent many areas of practice, including business and industry, public practice, government, education, and consulting. The AICPA sets ethical standards for its members and U.S. auditing standards for private companies, nonprofit organizations, and federal, state, and local governments. It develops and grades the Uniform CPA Examination, offers specialized credentials, builds the pipeline of future talent, and drives professional competency development to advance the vitality, relevance, and quality of the profession. The AICPA maintains offices in New York, Washington, DC, Durham, NC, and Ewing, NJ.
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